Yulong Eco-Materials Limited announced it has commenced waste hauling and recycling operations in the Lingyuan district section of a high-speed railway construction project in the city of Shangqiu, Henan Province. The railway will connect the cities of Zhengzhou in Henan Province and Xuzhou in Jiangsu Province. As announced last month, Yulong won this contract from a Central Government agency.

Yulong has redeployed 15 hauling trucks from its existing operations in Pingdingshan to Shangqiu. As per the terms of the contract, Yulong will receive RMB 19 (or approximately $3) per metric ton of hauled waste. Of note, the Liangyuan district site is projected to generate over 1.3 million metric tons of construction waste through its completion.

The collected waste is processed at a Company-owned mobile recycling station, which has an annual processing capacity of 2 million metric tons. The Company expects to generate additional revenue by selling the processed waste as raw materials to local construction companies.